NEW YORK (TheStreet) -- RATINGS CHANGES
AOL (AOL) was upgraded to buy at Cantor Fitzgerald. $50 12-month price target. Business fundamentals are improving, Cantor Fitzgerald said.
Atmel (ATML) was downgraded to neutral at Bank of America/Merrill Lynch. $9 12-month price target. The company has muted growth prospects, BofA/Merrill said.
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TheStreet Ratings team rates THORATEC CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate THORATEC CORP (THOR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income increased by 0.4% when compared to the same quarter one year prior, going from $18.17 million to $18.24 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- THOR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.23, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $17.43 million or 29.14% when compared to the same quarter last year. In addition, THORATEC CORP has also vastly surpassed the industry average cash flow growth rate of -30.55%.
- You can view the full analysis from the report here: THOR Ratings Report
This article was written by a staff member of TheStreet.